Dan Melson: September 2009 Archives

Based upon "average credit", not absolutely perfect credit. People who do have better credit get even better rates!

Conforming Rates

Thirty Year Fixed Rate Loans

4.875% 30 Year fixed rate loan, with one total point (that covers both discount and origination) to the consumer and NO PREPAYMENT PENALTIES!. Assuming a $400,000 loan, Payment $2117, APR 5.003! This is a thirty year fixed rate loan. The payment and interest rate will stay the same on this loan until it is paid off! 30 year fixed rate loans as low as 4.25 percent (If I wanted to pretend buying the rate down that far wasn't a waste of your money!)

5/1 Hybrid ARM Rates

5/1 ARMs have now fallen to levels below 30 year fixed by over a full percent for the same cost!

3.75% 5/1 ARM, with one total point (that covers both discount and origination) to the consumer and NO PREPAYMENT PENALTIES!. Assuming a $400,000 loan, Payment $1852, APR 3.870! This is a fully amortized thirty year loan with the interest rate fixed for five years. 5/1 ARM rates as low as 2.625% - If I wanted to advertise a rate that wastes thousands of dollars of your money!

Jumbo Conforming Rates (aka Super Conforming)

(NOW $417,001 to $697,500 in San Diego))

5.125% 30 Year fixed rate loan, with one total point (that covers both discount and origination) to the consumer and NO PREPAYMENT PENALTIES!. Assuming a $500,000 loan, Payment $2722, APR 5.254! This is a thirty year fixed rate loan. The payment and interest rate will stay the same on this loan until it is paid off! 30 year fixed rate loans as low as 4.375 percent if I was trying to get my clients to waste thousands of dollars!

VA Rates

4.875% 30 Year fixed rate loan,with one total point (that covers both discount and origination) to the consumer and NO PREPAYMENT PENALTIES (Standard Veterans Administration government generated charges to borrowers apply)!. Assuming a $400,000 loan, Payment $2117, APR 5.003! This is a thirty year fixed rate loan. The payment and interest rate will stay the same on this loan until it is paid off! 30 year fixed rate VA loans as low as 4.5 percent (But you'd have to be crazy to pay that many points!)

NONCONFORMING ("JUMBO") RATES

(NOW $697,501 and above in San Diego)

These numbers assume a 70% loan to value ratio, not 80.

Thirty Year Fixed Rate Loans

5.875% "Jumbo" 30 Year fixed rate loan, with one total point (that covers both discount and origination) and NO PREPAYMENT PENALTIES!. Assuming a $700,000 loan, Payment $4141, APR 6.002! This is a thirty year fixed rate loan. The payment and interest rate will stay the same on this loan until it is paid off! Jumbo 30 year fixed rate loans as low as 5.125 percent if you want to probably waste thousands of dollars you'll never get back!

5/1 Hybrid ARM Rates

JUMBO 5/1s are about one percent lower than 30 year fixed for the same cost

4.75% "Jumbo" 5/1 ARM, with one total point (that covers both discount and origination), and NO PREPAYMENT PENALTIES!. Assuming a $700,000 loan, Payment $3652, APR 4.869! This is a fully amortized thirty year loan with the interest rate fixed for five years. 5/1 Jumbo ARMs as low as 4.00 percent - I could advertise those if I didn't care about my clients wasting money!

On the hypothetical $700,000 loan, a 5/1 saves over $650 per month in cost of interest over a thirty year fixed at the same cost!

All rates above are intended for San Diego County today, and include a 30 day lock. Loan prices will vary every day. Loan pricing in the rest of California will be similar. Conforming loan pricing will be similar between about $150,000 and the conforming limit in your area. Nonconforming loan pricing will be similar from the conforming limit up to about $1 million dollars in loan amount.

10 year interest only payments available on 30 year fixed rate loans!

Great Rates on super-jumbo loans also available!

Zero closing costs and zero points loans also available!

Portfolio lenders! Need something special most lenders can't do? Portfolio lenders may be the key! I have portfolio lenders!

Yes, I still have low to zero down payment purchase programs.

These are actual retail rates at actual costs available to real people with average credit scores! I always guarantee the loan type, rate, and total cost as soon as I am able to lock the loan (subject to underwriting approval of the loan). I pay any difference, not you. If your loan provider doesn't do this, you need a new loan provider!

All of the above loans are on approved credit, not all borrowers will qualify, based upon an 80% loan to value and a median credit score on a full documentation loan. Rates subject to change until rate lock.

Interest only, bad credit and other options also available. If you need a mortgage, chances are I can do it faster and on better terms than you'll actually get from anyone else in the business.

Designing transactions for low to zero down payment a specialty

Please ask me about first time buyer programs, including the Mortgage Credit Certificate, which gives you a tax credit for mortgage interest, and can be combined with any of the above loans!

Owe more than the property is currently worth? Ask about the 125% refinance with no PMI

This is the new list of HOMESTEPS properties from Freddie Mac for the areas I specialize in. These properties qualify for special financing. I can get the list for other areas. Be aware that Freddie Mac does not remove properties from this list (even though they may be Pending) until they actually sell!

I also have a list of upcoming HOMESTEPS properties not on the market yet

This is the new list of HOMESTEPS properties from Freddie Mac for the areas I specialize in. These properties qualify for special financing. I can get the list for other areas. Be aware that Freddie Mac does not remove properties from this list (even though they may be Pending) until they actually sell!

I also have a list of upcoming HOMESTEPS properties not on the market yet

The new consumer article for today is Low Asking Price on Unfinanceable Properties. Almost always, the reason for an asking price well below other equivalent properties is the presence of some factor that means you cannot obtain a regular real estate loan on the property. If you have the cash, however, you can do what you like with it and such properties are a potential business opportunity.

Based upon "average credit", not absolutely perfect credit. People who do have better credit get even better rates!

The lenders and investors seem to be sending a strong signal that they expect rates to rise. The cost curve to buy down loan rates is steeper than usual and "no points" rates are probably the best value out there for most people. Also, the spread between medium term ARMs like the 5/1 and the thirty year fixed has widened, meaning that the 5/1 is a good bargain if you are comfortable with the fact it will adjust in 5 years if not refinanced. If you're one of the vast majority who refinances anyway within 5 years, the only difference between a 30 fixed and a 5/1 ARM is the ARM has a lower rate for the same cost.

Most of the quotes below are for zero points loans. Note how close to the note rate that the APRs are. This is because total costs are low. When you see a difference of 2 tenths of a percent, they're telling you these loans are high cost. Even the jumbo loans with one quoted below only have differences between APY and APR of just over a tenth of a percent!

Conforming Rates

Thirty Year Fixed Rate Loans

5.00% 30 Year fixed rate loan, with NO POINTS (discount or origination) to the consumer and NO PREPAYMENT PENALTIES!. Assuming a $400,000 loan, Payment $2147, APR 5.040! This is a thirty year fixed rate loan. The payment and interest rate will stay the same on this loan until it is paid off! 30 year fixed rate loans as low as 4.25 percent (But you'd have to be crazy to pay that many points!)

5/1 Hybrid ARM Rates

5/1 ARMs have now fallen to levels below 30 year fixed by nearly a full percent!

4.125% 5/1 ARM, with NO POINTS (discount or origination) to the consumer and NO PREPAYMENT PENALTIES!. Assuming a $400,000 loan, Payment $1939, APR 4.162! This is a fully amortized thirty year loan with the interest rate fixed for five years. 5/1 ARM rates as low as 3.00 percent (But you'd have to be crazy to pay that many points!)

Jumbo Conforming Rates (aka Super Conforming)

(NOW $417,001 to $697,500 in San Diego))

5.375% 30 Year fixed rate loan, with NO POINTS (discount or origination) to the consumer and NO PREPAYMENT PENALTIES!. Assuming a $500,000 loan, Payment $2800, APR 5.415! This is a thirty year fixed rate loan. The payment and interest rate will stay the same on this loan until it is paid off! 30 year fixed rate loans as low as 4.375 percent (But you'd have to be crazy to pay that many points!)

VA Rates

5.25% 30 Year fixed rate loan, NO POINTS (discount or origination) from the lender to the consumer and NO PREPAYMENT PENALTIES (Standard Veterans Administration government generated charges to borrowers apply)!. Assuming a $400,000 loan, Payment $2209, APR 5.290! This is a thirty year fixed rate loan. The payment and interest rate will stay the same on this loan until it is paid off! 30 year fixed rate VA loans as low as 4.5 percent (But you'd have to be crazy to pay that many points!)

NONCONFORMING ("JUMBO") RATES

(NOW $697,501 and above in San Diego)

These numbers assume a 70% loan to value ratio, not 80.

Thirty Year Fixed Rate Loans

5.75% "Jumbo" 30 Year fixed rate loan, with ONE point total discount and origination, and NO PREPAYMENT PENALTIES!. Assuming a $700,000 loan, Payment $4085, APR 5.876! This is a thirty year fixed rate loan. The payment and interest rate will stay the same on this loan until it is paid off! Jumbo 30 year fixed rate loans as low as 5.25 percent (But you'd have to be crazy to pay that many points!)

5/1 Hybrid ARM Rates

JUMBO 5/1s are about one percent lower than 30 year fixed for the same cost

4.875% "Jumbo" 5/1 ARM, with one point total discount and origination, and NO PREPAYMENT PENALTIES!. Assuming a $700,000 loan, Payment $3704, APR 4.995! This is a fully amortized thirty year loan with the interest rate fixed for five years. 5/1 Jumbo ARMs as low as 4.25 percent (But you'd have to be crazy to pay that many points!) On the hypothetical $700,000 loan, a 5/1 saves over $510 per month in cost of interest over a thirty year fixed!

All rates above are intended for San Diego County today, and include a 30 day lock. Loan prices will vary every day. Loan pricing in the rest of California will be similar. Conforming loan pricing will be similar between about $150,000 and the conforming limit in your area. Nonconforming loan pricing will be similar from the conforming limit up to about $1 million dollars in loan amount.

10 year interest only payments available on 30 year fixed rate loans!

Great Rates on super-jumbo loans also available!

Zero closing costs and zero points loans also available!

Portfolio lenders! Need something special most lenders can't do? Portfolio lenders may be the key! I have portfolio lenders!

Yes, I still have low to zero down payment purchase programs.

These are actual retail rates at actual costs available to real people with average credit scores! I always guarantee the loan type, rate, and total cost as soon as I am able to lock the loan (subject to underwriting approval of the loan). I pay any difference, not you. If your loan provider doesn't do this, you need a new loan provider!

All of the above loans are on approved credit, not all borrowers will qualify, based upon an 80% loan to value and a median credit score on a full documentation loan. Rates subject to change until rate lock.

Interest only, bad credit and other options also available. If you need a mortgage, chances are I can do it faster and on better terms than you'll actually get from anyone else in the business.

Designing transactions for low to zero down payment a specialty

Please ask me about first time buyer programs, including the Mortgage Credit Certificate, which gives you a tax credit for mortgage interest, and can be combined with any of the above loans!

Owe more than the property is currently worth? Ask about the 125% refinance with no PMI